This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8249825.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Mandelson positive over Vauxhall | Mandelson positive over Vauxhall |
(about 7 hours later) | |
Business Secretary Lord Mandelson says he is upbeat about the future of the UK Vauxhall plants after they were taken over by a Canadian firm, Magna. | Business Secretary Lord Mandelson says he is upbeat about the future of the UK Vauxhall plants after they were taken over by a Canadian firm, Magna. |
It has bought the European operations of Vauxhall's owner General Motors. | It has bought the European operations of Vauxhall's owner General Motors. |
The move prompted fears among the workforce that the factories at Luton and Ellesmere Port will close. | The move prompted fears among the workforce that the factories at Luton and Ellesmere Port will close. |
Lord Mandelson acknowledged there were likely to be job losses but said he believed the new owners were committed to keeping the plants open. | Lord Mandelson acknowledged there were likely to be job losses but said he believed the new owners were committed to keeping the plants open. |
He said: "All the workforce, throughout the entire company in Europe will face some restructuring. There's never been any question about that. | He said: "All the workforce, throughout the entire company in Europe will face some restructuring. There's never been any question about that. |
"But if you're asking me whether I believe that the future of the two UK plants are assured, then I have received that assurance from Magna." | "But if you're asking me whether I believe that the future of the two UK plants are assured, then I have received that assurance from Magna." |
Worker uncertainty | Worker uncertainty |
On Thursday, unions said General Motors' announcement failed to quell fears of job losses at UK plants. | On Thursday, unions said General Motors' announcement failed to quell fears of job losses at UK plants. |
"Uncertainty surrounding the long-term future of Britain's car plants will continue," said Tony Woodley, general secretary of the Unite union. | "Uncertainty surrounding the long-term future of Britain's car plants will continue," said Tony Woodley, general secretary of the Unite union. |
Car parts maker Magna said it was committed to keeping Vauxhall's Ellesmere Port plant open. However, doubts remain about the firm's Luton plant. | Car parts maker Magna said it was committed to keeping Vauxhall's Ellesmere Port plant open. However, doubts remain about the firm's Luton plant. |
The two sites account for most of the firm's 5,500 UK workforce. | The two sites account for most of the firm's 5,500 UK workforce. |
Magna said it would honour existing contracts at Luton until 2013, but has not given any commitment beyond this point. | Magna said it would honour existing contracts at Luton until 2013, but has not given any commitment beyond this point. |
HAVE YOUR SAYI dont think it's the best deal for Vauxhall but it's better than selling it to another European firmRod Dublin, Aldershot Send us your comments | |
The Luton plant has a contract to build Vivaro vans as part of a deal with Renault but the French carmaker has a clause allowing it to pull out of the contract if there is a change of ownership. | The Luton plant has a contract to build Vivaro vans as part of a deal with Renault but the French carmaker has a clause allowing it to pull out of the contract if there is a change of ownership. |
Some observers have criticised the UK government, arguing that it has been outmanoeuvred by its German counterpart, because it has received specific commitments about safeguarding German jobs. | Some observers have criticised the UK government, arguing that it has been outmanoeuvred by its German counterpart, because it has received specific commitments about safeguarding German jobs. |
Magna has said it will not close any plants in Germany. | Magna has said it will not close any plants in Germany. |
This pledge meant that the German government put pressure on GM to sell Opel and Vauxhall to Magna. It also provided a 1.5bn euro ($2.2bn; £1.3bn) bridging loan to keep Opel operating in recent months. | This pledge meant that the German government put pressure on GM to sell Opel and Vauxhall to Magna. It also provided a 1.5bn euro ($2.2bn; £1.3bn) bridging loan to keep Opel operating in recent months. |
Last month, it also said it would lend Opel 4.5bn euros if the carmaker was sold to Magna. | Last month, it also said it would lend Opel 4.5bn euros if the carmaker was sold to Magna. |
Lord Mandelson said there was "British money on the table" should the company need financial support. | Lord Mandelson said there was "British money on the table" should the company need financial support. |
"I have had four face-to-face meetings with Magna in the last couple of months. I am satisfied about their commitment to Vauxhall's plants," he added. | "I have had four face-to-face meetings with Magna in the last couple of months. I am satisfied about their commitment to Vauxhall's plants," he added. |
"The government will now discuss our share of the funding of the deal and I expect to tie down the details of this in the near future." | "The government will now discuss our share of the funding of the deal and I expect to tie down the details of this in the near future." |
Previous version
1
Next version